According to HMRC, individuals pay Scottish Income Tax if they live in Scotland. Care should be taken when considering the phrase "live in Scotland". In particular, you may also pay Scottish Income Tax if you:

- move to or from Scotland,- live in a home in Scotland and one elsewhere in the UK, for example for work,- don’t have a home and stay in Scotland regularly, for example you stay offshore or in hotels.

If an individual moves to or from Scotland, they will pay Scottish Income Tax if they move to Scotland and live there for more than half the tax year.

There is also a requirement that taxpayers advise HMRC of a change of address if they move to or from Scotland.

Planning note

Clearly, taxpayers may suffer varying rates of Income Tax depending on which side of the border they live. This is yet another factor that needs to be considered when advising affected clients on Income Tax planning matters.